by Giles Cadman – Venulum Ltd
Laura Latham in the New York Times has a great article on Chinese wine investment, going beyond the usual price for Latour and considering the purchase of Chateau.
Following a trend set by other Chinese, who have bought 20 of the 8,500 Bordeaux vineyards over the past four years, the 48-year-old businessman bought the Château du Grand Mouëys in February. But the purchase was not purely a commercial decision.
“Château du Grand Mouëys is extremely historic, with a big vineyard and forest,” Mr. Zhang said, speaking through a translator. “It is the sleeping beauty of Bordeaux.”
The purchase of Chateau in the current market appears to be a canny move.
Michael Baynes, managing director of the French real estate agency Maxwell-Storrie-Baynes, says most Chinese purchasers are aware that vineyard prices in Bordeaux are stagnant, so it is a good time to buy.
A chateau with a vineyard that produces a regional Bordeaux appellation wine in the Entre-Deux-Mers region of southwestern France would sell for about €12,000 to €15,000 per hectare today, the same amount as the lowest sale price in 2010, Mr. Baynes said.
And, he added, vineyards now selling for €15,000 to €25,000 a hectare probably sold for €25,000 to €40,000 a hectare 10 years ago.
“In terms of land, values over the past decade have been at an all-time low. It means there is a good supply of properties for sale, and prices are still quite reasonable. Interest from Chinese and Southeast Asian investors has stabilized the market,” he said, adding that while prices have not yet risen, they are expected to do so within two years.
